Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
; _* n) X' |, F* Mexpect much from Crude Oil producers and future is not with the
4 e# s& ~7 n) R) j6 s" I$ Gcompanies producing Jet fuels but Biofuels. Also no wonder if some of
7 R$ q0 C5 _2 T2 t, P0 |these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
5 W9 h! _. [& yEXXON, BG, BP, Cheveron ....xyz.. oils
) x7 A/ k" y+ T8 f3 C8 w" [
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
, {9 e6 R2 x6 h3 n4 C  x
! i1 o( M+ b# j$ t
5 ?; ~! p0 s* p8 vThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
5 G& _( P" D/ ]+ U
9 q7 m) K( V3 p" I+ T" O
1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


. P( S9 d$ `* n; ^6 r2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
( o, m2 R# N0 d, x+ ~! n
8 ^% a7 G; H' D- O9 Y
2 T7 S, C0 \0 E+ P3. New methods of injecting CO2 and surfactants into oil wells is
- M6 V7 `/ X/ J- H) dbeing used to double their output.
. I" B. `8 |  R& z

: ]! v6 k/ ^- n5 b, Y' ?" \' U" ?3 G4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
! N. V" N* e- ~! ^racing to produce bio fuels.

. K( k1 A0 G! a1 v6 ?+ @
- P/ k. H' T+ e6 b/ g8 n, k, N5. Virtually every restaurant in the US and all food processing plants
2 T* h4 G2 E% jare now selling their used oil to bio-diesel producers. Every pork,
5 \6 b( h3 a- T/ w$ R& k1 \cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
8 b/ j9 G# y- o+ L) y: v1 \+ jproducing 30,000 gallons of bio-diesel per day from pork fat.

' o+ [$ j; \% ~. @8 a) v- Y
7 n9 F" C/ U" T" u4 }: x! H/ K. `; K6. There are 99 nuclear reactors in various stages of planning and
9 C4 O' T( P' m! {" k8 dconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


' B2 w+ p0 F$ q% A; @/ p7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
- S7 q/ ?6 B) Qwith new more fuel efficient equipment. Airlines and railway companies
! [. R/ L' p1 m* W$ iare experiencing 20% to 25% better fuel econony with the new
' |5 f5 l  c; k  G. \equipment.
) F8 r: ~% ]4 ^2 M6 |" }% p+ S
) I4 g  X/ U  Q+ H9 a/ C4 q
Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

4 h5 d* p4 }4 Y( P
( W5 Y5 @+ l' h! D) z1 L8. Cities and counties throughout the US are selling the rights to
9 [, ^3 u* R0 M0 `capture methane gas from landfills. This is a huge source of gas
1 c) \5 z/ C4 U# S$ d9 eavailable at very little cost or risk. The gas is displacing crude
2 U% [. n- u& h: Aoil.
! M9 y# C* o- u8 k! v9 p3 f* L
* C+ ~+ G; D* {! E! G: S
9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 C5 M. v% d; w, g$ ?) D  E2 mproduced as a byproduct is sold to oil companies for injection into
oil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
# _4 Q5 A% g% N1 m! l: V  Dsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
3 J% I6 Z2 ~& |5 |, tprice of crude oil but the sum of all of them together is world
$ ?" C0 T- K1 m/ H# g( l2 b1 l1 ]" uchanging. The important thing is that OPEC no longer has the ability
* w5 q. O. n: v5 Y2 s. \/ xto control oil prices.
- y! w: k1 D0 E% E6 p& ^
8 Q$ C! K% y4 k" X( u7 {9 m$ K8 ~
' u* x! Q) R1 MWith the above scenario, I still believe that there are under
+ d3 ^( ]' U3 x+ s: E" H2 A/ ^3 e2 Kperformed OIL companies and probably they are yet to get the justified
value .....
5 \1 @8 P1 J' V9 R  mIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
; [; T8 }+ F/ B9 E

, ^# Y5 a5 K  f5 e" b2 C/ oThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 ~" K. F4 }( G! s2009 ... FYI-Only